PILOT FACT #1:
In October, AES and the IDA were trying to flim flam the public into thinking that a second plant was coming and that the second plant would make the $90 million tax giveaway on Plant #1 somehow OK.
In fact, the plan was very devious. In the original PILOT plan with a PILOT for each plant resulted in AES Plant #1 Pilot paying pay only $15.8 Million in total tax, annually and the PILOT application for AES Plant #2 (given to Huntley) had AES paying only $5 million in total taxes on a completed new plant for 15 years. The two PILOT totals on TWO $1 billion dollar Plants was to be only $20.8 Million dollars. That is less tax revenue to the County, Town and School than the first plant would have paid with no PILOT and NO SECOND CLEAN COAL PLANT in 2008.
The current single Pilot with a loss of over $94 million ( $43 million with no inflation) in tax revenue is bad enough but when the Governor’s team investigates he will find it was planned to be much worse. A doubling of the toxic chemical production with a second plant with NO net tax benefit to the tax payers.
PILOT FACT #2:
AES has already had substantial tax breaks over the last 9 years with major discounts in their assessments. AES Assessments has been discounted up to 60% below the $1 Billion it cost to build the plant and AES is currently discounted by 40% below its $1.149 billion dollar market value. After 30% State pollution control credits taxable value drops to $796,498,000 and the town still discounts down to $666,666,667.
AES does not need any additional corporate welfare from the County. AES Somerset while crying about their Assessments has had the most profitable 3 years on record. According to NYORPS - they state AES-Somerset net profits for 2004 at $130 million; 2005 net profits at over $150 million and 2006 net profits at over $190 million. The reality is that AES Somerset has NO problem competing and profiting in the power generation market and it has no financial hardship in paying their fair share of property taxes.
PILOT FACT #3:
A major tax shift is occurring across the County. Fair Tax revenue formerly paid by a Profitable Power plant will now have to be replaced by the taxpayers and small business owners of Niagara County Town Attorney using numbers provided by the County estimates an over $43 million loss to taxpayers over the 12 years of the PILOT( assuming no tax rate inflation) A PILOT which can be extended at the whim of the IDA.
Tax Reform Niagara now shows total tax revenue loss with 3% tax rate inflation at $94.6 Million dollars. County tax loss share is $31 Million dollars. Which represents over 12 years a $3.84/thousand increase on the tax rate. Seniors and small business will pay close to 3% of assessed value in property taxes while AES with this PILOT will pay only 1.4% of their fair assessed value in Property taxes.
PILOT FACT #4: Barker School Official estimate that with a 0% increase in the budget that major cuts in Non-mandated programs will still occur to make up for inflationary increases in mandated programs in the budget.
Mandated Programs make up about 85% of School budgets. Staff Cuts and Nonmandated program cuts will have to be made to reach just a 0% budget increase. Officials warn that a major tax increase will still occur after these cuts due to the major loss in tax revenue. School Officials have already informed 24 teachers and staff that their jobs will likely be cut if Pilot is not terminated by the courts.
PILOT FACT #5:
The IDA had a hearing on an outrageous PILOT at Barker Central School Auditorium with overwhelming opposition expressed. The IDA changed the PILOT 180 degrees in the dead of night and passed a motion to consider a ridiculous new PILOT. That did not give residents of the County, Town and School the public hearing that the LAW requires. Therefore it is ILLEGAL and should be terminated. Good Government is not negotiating an outrageous proposal down to the ridiculous.
PILOT FACT #6:
Especially when you look at FACT #1 where there is no net Tax Benefit to the Town, School or County, why would we want a second plant with twice the pollution concerns. Twice the volume of hydrochloric acid out the smoke stack and twice the heavy metals and other toxic pollutants being put into the toxic landfill near our homes and school and waterways. EPA's Toxic Release website says 1.12 million pounds per year are put into ground and air by AES of Toxic chemicals deemed Hazardous to humans.
PILOT FACT #7:
AES did not need a PILOT ( Corporate Welfare) on Plant #1 to get or apply for the new Clean Coal Plant. Current facility financials were not a consideration in new Plant applications with NYS Power Authority. The State is providing all the tax incentives needed to build the new plant: $50 million dollars from the State and Empire Zone status which saves AES Millions more in Taxes and refunds on taxes. A Smart County doesn’t have to give up a dime. If a second plant is built here, then Empire Zone is all that needs to be provided nothing more.
PILOT FACT #8:
This PILOT amounts to a $95 MILLION Corporate Welfare check transferring your tax dollars to AES headquarters in Arlington, VA. That’s a total of $678,571 per current AES Somerset employee over 12 years.
PILOT FACT #9:
The Town and the School have no choice but to sue the IDA over this illegal PILOT and the County Legislature has finally joined as well. Taxation without Representation because of IDA action.
PILOT FACT #10:
AES HAS A TRACK RECORD OF NOT BEING A GOOD CORPORATE CITIZEN IN THE COMMUNITIES THEY RESIDE OR TO THE ENVIRONMENT IN GENERAL OVER MANY YEARS.
Read Letter to the
Niagara County Legislative Chairman
“Is History Repeating Itself”
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